Biden administration expects 'significant increase' in US oil, gas supply by end of 2022: Granholm

The Biden administration is confident that US oil and gas producers have already started taking steps that should result in a "significant increase" in domestic energy supply by the end of the year, US Energy Secretary Jennifer Granholm said March 22.

She said the US was working to identify 3 million b/d of new global oil supply to help allies reduce their reliance on Russian imports.

Granholm said oil and gas executives made assurances behind the scenes at the CERAWeek by S&P Global energy conference this month that they were ramping up investments, bringing on new rigs and taking other steps to pump more.

"We're hopeful that they live up to that," she said.

Industry executives maintained onstage that they faced considerable challenges to increasing production, including investor pressure, uncertainty around climate regulations, supply chains and worker shortages.

Surging oil prices in recent weeks have caused analysts to raise expectations for US supply growth in 2022, with the Energy Information Administration predicting it will increase by 850,000 b/d from 2021 and S&P Global Commodity Insights expecting 930,000 b/d.

US oil supply was estimated at 11.7 million b/d in March, according to EIA's latest Short-Term Energy Outlook.